Generation Mining (TSX: GENM) has nearly cleared one of the last hurdles standing between its Marathon copper-palladium project and a construction start, winning credit approval for a US$310 million senior secured project finance facility.
The lenders behind the facility, including Export Development Canada, ING Capital and Société Générale, have each granted internal credit approval, the company said Wednesday. The financing, worth roughly C$424 million, is earmarked for the construction and development of the fully permitted polymetallic deposit.
The senior facility is just one piece of the funding arrangements secured by Generation. Combined with an undrawn C$200 million metals streaming agreement with Wheaton Precious Metals and about C$145 million in equipment leasing facilities, Generation Mining now has approximately C$769 million in committed funding toward building the mine.
That covers the bulk of what the project needs. The company’s 2025 updated feasibility study pegged initial capital at C$992 million, leaving a gap Generation Mining is working to close through continuing talks with subordinate debt lenders, surety providers and equity investors.
Chief Executive Officer Jamie Levy framed the approvals as a turning point, calling them “a landmark moment for Generation Mining and a powerful endorsement of the Marathon Project.” He noted the lenders had conducted extensive due diligence and that the company, with all permits in hand, is firmly on the path to a construction decision.
Levy also signalled that the financing structure may shift. During negotiations, the company concluded that part of the previously announced senior debt could be replaced with alternative capital elsewhere in the structure, allowing the senior facility to be sized more efficiently. Interest from cornerstone investors, he said, could supply that capital on terms the company considers more favourable.
The facility still requires final documentation, including export credit agency arrangements and an intercreditor agreement, alongside customary project finance conditions.
The feasibility study laid out a mine life of roughly 13 years, an after-tax net present value of C$1.07 billion and a 28% internal rate of return. Should the remaining financing fall into place, construction is expected to begin in the second half of 2026.
Generation Mining last traded at $0.61 on the TSX.
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